SOLAR PV DEVELOPMENT IN GHANA Short Course in Solar PV INEES, Dhaka, Bangladesh Dr. Gabriel Takyi KNUST, Kumasi, Ghana 1-8th October 2010
OUTLINE • Introduction • Energy production & utilization • Solar PV potential in Ghana • Solar Radiation Map of Ghana • Solar PV installations (projects) • Installed capacities • Capacity Building • Renewable Energy Law of Ghana • Energy Policy in Ghana • Conclusions & Recommendations
INTRODUCTION • Energy Production & Utilization Since 2000 • Production • Indigenous Energy (woodfuel):90-95% • Hydropower, 5-10% • Solar Energy >1%, mainly for crop drying • Source: Energy Commission
FUTURE DEMAND & COST • Demand Projections • GPRS projection of $1,000 per capita by 2015 will demand: • 38-46 million tonnes of woodfuel by 2015 and 54-66 tonnes by 2020. • Petroleum fuel demand is projected to increase from 1.6 million tonnes in 2000 to 3 million tonnes in 2015 • Grid electricity demand would grow from about 6,900 Gigawatt-hour in 2000 to about 18,000 by 2015, reaching about 24,000 Gigawatt-hour by 2020. • Source: Energy Commission
FUTURE DEMAND & COST (cont.) • Cost Projections • For the high economic growth scenario, total energy cost is expected to be about: • US $3.1-3.4 billion in 2008; • US $3.6 – 3.9 billion in 2012; • US$ 4.3 - 4.6 billion by 2015; the target year for the MDG7; and • US $5.2 – 5.6 billion in 2020. • Source: Energy Commission
SOLAR PV POTENTIAL IN GHANA • Solar Radiation Map • Solar intensities of agro-climatic zones • Solar PV Projects/Installations • GEDAP • Installed capacities
SOLAR RADIATION MAP OF GHANA Source: Ministry of Energy
4911Systems No. of Systems 3500Systems 2530Systems 700Systems 1000kW 800kW 335Systems 510kW Installed Power 353kW 160kW 1991 1993 1998 2000 2003 Year EVOLUTION OF SOLAR PV INSTALLATIONS IN GHANA (Over 5,000 at present) Source: Obeng2008
SOLAR PV APPLICATION AS OF 2003 Source: Obeng 2008
SOLAR PV INSTALLATIONS (PROJECTS) IN GHANA:GRID CONNECTED • 4 kWp Solar PV Grid Connected (fixed) at CoE, KNUST • Demonstrates the technical viability of Grid Connected Solar PV system • 4 kWp Grid Connected Solar PV(with tracking) at the Energy Commission, Accra • 50 kWp Solar PV Grid Connected at the Ministry of Energy • One 20 kWp utility grid-connected pilot Solar PV plant by World Bank ESMAP Programme (pipeline)
KNUST 4 kWp System • System components: • Two (2) inverters, input power 2500 W (DC) • Output voltage 198-260 V (AC) • System output parameters: • Results of one year of operation: • Generated 6,197 kWh electrical energy • Saved 4,337 kg of CO2
FINANCIAL JUSTIFICATION OF 4kWh GRID CONNECTED SOLAR PV SYSTEM • @ CoE Using Simple payback method and RETSCREEN software • Critical input parameters: • Cost of Solar PV system • Feed-in-tariff • Income from GHG savings • Capital subsidy • Output: Payback period
DATA USED AS REFERENCE CASE • Project location: KNUST, Kumasi, Ghana • System type: Polycrystalline • Power capacity: 4kWp • Inverter capacity: 5kW • PV System cost: 7$/Wp (typical price of Solar PV in Ghana) • GHG credit:$0
DATA USED AS REFERENCE CASE cont. • Electricity export rate: 11 US cent/kWh (tariff for non-residential with consumption between 301-600 kWh • Grant/capital subsidy: 0% • Inflation: 0% • Discount rate: 0%
RESULTS • Payback of 63 years without tariff and capital subsidy for the reference case • Payback of 10 years when tariff of 60 US cents/kWh is used • Payback of 12 years when no tariff is used but a grant of 80% of initial cost • Payback of 10 years when 40% capital subsidy and 40 US cents /kWh tariff is applied (this is interesting for business consideration) • Source: Brew-Hammond & Kumi, KNUST, 2009
RESULTS cont. • Introduction of GHG credits did not show significant improvement in payback period • The higher the tariff, the less the effect of GHG credits • Effect of different levels of capital subsidy improved the payback period and profitability of solar PV ventures significantly • Lower PV System cost yielded low payback period
SOLAR PV INSTALLATIONS (GEDAP PROJECTS) Source: Ministry of Energy
GEDAP DONORS/PARTNERS • World Bank • International Development Agency (IDA) • Global Energy Facility (GEF) • African Development Bank (AfDB) etc
SOLAR PV INSTALLATIONS (GEDAP PROJECT) Source: Ministry of Energy
CAPACITY BUILDING • Short Courses in Solar PV • JICA (no serious training- just human resource development, standards and testing centres) • DENG (130 technicians trained by 2007) • GEDAP (see previous slides) • Edulink: ACP-EU Cooperation programme • Twice a year since August 2008 • Seeks to build local & regional capacity in development and implementation of RETs
EDULINK, ACP-EU COOPERATION PROJECT • Title: Renewable Energy Education Project (REEP) • REEP Seeks to Strengthen Both Institutional & Human Resource Capacity • REEP Activities: • Solar PV training courses for practicing engineers and technicians in Burkina Faso and Ghana; • Biofuels training courses for practicing engineers and technicians in Burkina Faso and Ghana;
EDULINK, ACP-EU PROJECT (cont.) • REEP Activities: • Renewable energy course for undergraduate and postgraduate students in the two West African HEIs; • Distance learning Master’s programme in renewable energy for professionals in public and private institutions across the West African sub-region; • Staff travels for attachment/networking, and • Monitoring and Evaluation.
CAPACITY BUILDING EDULINK PROGRAMME • STANDALONE SOLAR PV TRAINING: KNUST +2iE Partner KNUST (Ghana) 2iE (Burkina Faso) • Main focus areas: • Installation and maintenance of Solar PV System • Design sizing and installation
DRAFT RENEWABLE ENERGY LAW FOR GHANA • Renewable Energy Bill (proposed law) before parliament • The objectives of this Bill include: • To promote the development and utilization of renewable energy sources for electricity generation and supply • To provide a framework for Government support for electricity generation and supply from renewable energy sources • To provide an enabling environment to attract investment in renewable energy sources
DRAFT RENEWABLE ENERGY LAW FOR GHANA (cont.) • The objectives of this Bill include cont: • To encourage businesses, households and communities to increase the use of renewable energy in their consumption mix • To diversify supplies and thereby safeguarding energy security; • To improve access to electricity for the poor using renewable energy sources
DRAFT RENEWABLE ENERGY LAW FOR GHANA (cont.) • The objectives of this Bill include cont.: • To build indigenous capacity in technology for renewable energy sources • To build knowledge and awareness around renewable energy generation
RENEWABLE ENERGY LAW & FEED IN-TARIFF • FEED-IN-TARIFF SCHEME: • The Energy Commission may establish a feed-in-tariff scheme that would guarantee the payment to a generator registered with the Energy Commission under the scheme an amount, calculated by reference to: • The relevant feed-in-tariff rate set by the Public Utilities Regulatory Commission. • All the electricity produced by that generator and not just the electricity connected to the grid.
CRITERIA FOR SETTING THE FEED-IN-TARIFF • In setting the feed-in-tariff rates the Public Utilities Regulatory Commission may take into account: • Technology being used by the renewable energy producer • Operating norms for the specific technology under consideration • Costs associated with construction, commissioning, • Operation and maintenance of the plant; • Reasonable rate of return.
FEED-IN-TRARIFF ADDITIONAL INFORMATION • A feed-in-tariff rate set and payable to the owner of a qualifying generator at the date of the registration of the generator is fixed and guaranteed for a period of twenty years from the date of the registration.
FISCAL INCENTIVES AND RENEWABLE ENERGY FUND • Fiscal Incentive: • The Energy Commission shall within 12 months of the coming into force of this Bill take such steps as may be deemed necessary, in collaboration with the appropriate agencies of Government and after consultation with stakeholders, to identify and make recommendations to Government for the introduction of fiscal incentives to promote the use of renewable energy sources.
FISCAL INCENTIVES AND RENEWABLE ENERGY FUND cont. • Renewable Energy Fund for the following purposes: • the promotion of grid interactive renewable electricity by means of generation based incentives, feed-in-tariffs and capital subsidies • the promotion of scientific and technological research into renewable energy; • the promotion of research into the establishment of standards for the utilization of renewable energy • the provision of production based subsidies for renewable energy generation
ESTABLISHMENT OF RE FUND (cont.) • For the following purposes : • development of infrastructure for renewable energy • development of renewable energy projects in Ghana • conduction of surveys, assessments of renewable energy sources, and the development of relevant information systems; • promotion of the production of equipment for the development and utilization of renewable energy in Ghana; • equity participation in renewable energy projects • promotion of programmes to adopt international best practices.
ENERGY POLICY IN GHANA:KEY CHALLENGES • Some of the key challenges facing the energy sector: • Rapidly growing demand for energy due to expanding economy & growing population • Over reliance on woodfuels which could threaten the country’s forest cover. • Inadequate investments to match the growing demand due to lack of capital. • Solar energy which is relatively abundant is barely exploited
POLICY VISION OF ENERGY SECTOR MINISTRY • POLICY STATEMENT: • To develop an ‘Energy Economy’ that would ensure sustainable production, supply and distribution of high quality energy services to all sectors of the economy in an environmentally friendly manner. • Source: Energy Commission
POLICY VISION OF GHANA • Strategic National Energy Plan (SNEP) For Period 2006-2020 • Goal: contribute to the development of sound energy market • 10 Key Policy Objectives
10 POLICY OBJECTIVES • 1. Stimulate economic development by ensuring that energy plays a catalytic role in Ghana’s economic development • 2. Consolidate, improve and expand existing energy infrastructure • 3. Increase access to modern energy services for poverty reduction in off-grid rural areas
10 POLICY OBJECTIVES (cont.) • 4. Secure and increase future energy security by diversifying sources of energy supply • 5. Accelerate the development and utilization of renewable energy and energy efficiency technologies • 6. Enhance private sector participation in energy infrastructure development and service delivery
10 POLICY OBJECTIVES (cont.) • 7. Minimise environmental impact of energy production, supply and utilization • 8. Strengthen institutional and human resource capacity and R&D in energy development • 9. Improve governance of energy sector • 10. Sustain and improve commitment to energy integration as part of economic integration of West Africa
STRATEGIES TO ACHIEVE OBJECTIVES (5 & 8) • Objective Five (5) Accelerate the development and utilization of renewable energy and energy efficiency technologies so as to achieve 10% penetration of national electricity and petroleum demand mix respectively by 2020.
STRATEGIES FOR OBJECTIVE 5 • Strategies • Government recognises the advantages of indigenous and renewable energy resources to complement the existing conversional and traditional energy mix of the country. • The nation therefore targets 10% of renewables in the electricity supply mix in terms of installed capacity and 10% of renewables in terms of petroleum fuel supplies by 2020. • The renewables for electricity is expected to come mainly from solar, small and medium sized hydros, wind, biomass and municipal solid wastes. Renewables to supplement petroleum supplies is expected to come from bio-fuels.
OBJECTIVE 8 • Objective Eight (8) • • Strengthen institutional and human resource capacity in energy development.
STARATEGIES FOR OBJECTIVE 8 • Strategies • Implementing the institutional reforms in the energy sector, namely the Power Sector Reform and the Deregulation of the Petroleum Sector. • Strengthening the existing regulatory agencies, namely the Energy Commission and the Public Utility Regulatory Commission (PURC) to enhance their capabilities. • Supporting the training of Ghanaians in all fields of energy development and management
STRATEGIC PLAN FOR THE DEMAND SECTORRESIDENTIAL: • Electrification • National goal is to achieve 100% universal electrification by 2020. Sixty percent (60%) access is estimated for now. Connection however has largely been by grid. • Strategic Targets: • To achieve 15% penetration of rural electrification by decentralised renewable energy complementation by 2015 expanding to 30% by 2020. • To reduce the average electricity intensity per urban household by 50% by 2020. • Decentralised renewable energy penetration is less than 1% at present.
STRATEGIC PLAN FOR THE DEMAND SECTOR RESIDENTIAL SECTOR (cont.) • Cooking • Strategic Targets: • i. To reduce the average woodfuel energy intensity per urban household by 30% by 2015 and by 50% by 2020. • ii. To reduce firewood intensity per rural household by 10% by 2020. • These measures can reduce the annual wood requirements for the production of charcoal by 50% by 2020. Woodfuel share of cooking fuels for urban household averaged about 90% since 2000.